Saturday 1 February 2014

IMF Calls on Emerging Markets to Bolster Economic Fundamentals - Bloomberg

IMF Calls on Emerging Markets to Bolster Economic Fundamentals - Bloomberg:



"The International Monetary Fund said some developing countries need to take action to “improve fundamentals” as emerging-market stocks extended their worst start to a year since 2008.



“The turbulence also underscores the need for vigilance among central banks over liquidity conditions in international capital markets,” the IMF said in an e-mailed statement today.



Emerging-market stocks declined today as signs of a Chinese slowdown and worse-than-estimated Russian economic data bolstered concern the global recovery will falter. The MSCI Emerging Markets Index retreated 0.2 percent to 934.50 at 12:34 p.m. in New York, bringing this year’s slide to 6.8 percent."



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Turkish Lira Advances With Stocks on Russia Ruble Intervention - Bloomberg

Turkish Lira Advances With Stocks on Russia Ruble Intervention - Bloomberg:



"Turkey’s currency and stocks erased losses, with the lira set for a 10-day high versus the dollar, as Finance Minister Mehmet Simsek ruled out capital controls and Russia’s central bank intervened to support the ruble. 




The currency appreciated 0.7 percent to 2.2450 against the greenback at 6 p.m. in Istanbul, paring its loss this month to 4.3 percent. The central bank has in the past week held an unscheduled market intervention and raised rates in an attempt to shore up the exchange rate. The yield on two-year benchmark notes climbed seven basis points to 10.95 percent today, while the Borsa Istanbul 100 Index rose 1 percent following a 1.9 percent decrease earlier.



Simsek ruled out restrictions on capital movements as Prime Minister Recep Tayyip Erdogan spurred bets that the government may resort to alternative measures to support the lira. The ruble rebounded from a record after Bank Rossii affirmed unlimited market intervention to keep the currency within its target corridor amid a selloff in emerging markets."



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